Urban Company IPO to list on Wednesday; GMP indicates bumper listing – price and key details inside

Urban Company IPO GMP in focus: Urban Company, which garnered significant interest during its bidding period, with subscription crossing over 100 times, is set to enter bourses on Wednesday, September 17, and is also likely to attract the same enthusiasm as the grey market premium signals a stellar entry for the stock.

According to market sources, the company's shares are commanding a GMP of ₹53 ahead of listing. Based on the company's upper band issue price of ₹103 and the current GMP, the estimated listing price of Urban Company stands at ₹156 per share, 52% above the issue price.

The grey market premium indicates investors’ willingness to pay a premium over the IPO price and is not the final listing price for the stock.

During its bidding period between September 10 and 12, the IPO received a strong response from all sections of investors, with bids coming in for 110 crore shares as against the offered shares of 10.15 crore, resulting in a subscription of 109 times.

This response for a mainboard is also the largest seen in September so far and one of the biggest in the current calendar year. The IPO is a combination of a fresh issue of 4.58 crore shares aggregating to ₹472 crore and an offer for sale of 13.86 crore shares aggregating to ₹1,428 crore.

The company plans to use the funds from the issue towards expenditure for new technology development and cloud infrastructure, expenditure for lease payments for offices, expenditure towards marketing activities, and general corporate purposes.

About Urban Company

Urban Company operates a technology-driven, full-stack online services marketplace providing quality services and solutions across various home and beauty categories. It operates in 59 cities across India, the United Arab Emirates, Singapore, and the Kingdom of Saudi Arabia, of which 48 cities are in India, as of December 31, 2024.

Its platform enables consumers to easily order services, including cleaning, pest control, electrician, plumbing, carpentry, appliance servicing and repair, painting, skincare, hair grooming, and massage therapy.

The company swung to a consolidated net profit of ₹239.8 crore in FY25, reversing a loss of ₹92.7 crore in FY24, while the net loss stood at ₹312 crore in FY23 and ₹514 crore in FY22.

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